Dell has announced the sale of its North American remanufacturing operation in Lebanon, Tennessee, to GENCO Supply Chain Solutions, a US-based third-party logistics services provider. The sale includes the company’s receipt and remanufacturing operations, a 298,000-square-foot facility, and continued employment for the employees at the facility.
Dell’s move is a part of the changes the company is making to simplify its global operations, enhance performance and reduce costs. Dell said that it is committed to GENCO’s new operation for three years for the remanufacture of its returned desktop and notebook computers, servers and storage systems, which would then be sold as refurbished products to customers.
Though the full terms of the agreement were not disclosed, it has been revealed that the purchase will not become final until closing conditions are met. Subject to customary closing conditions, GENCO is expected to start managing operations at the Lebanon facility from August 1.
Dell said that its sales, order fulfilment, and technical and sales support functions in the greater Nashville area would remain unaffected by the sale.
Annette Clayton, vice president of global supply chain at Dell, said: “Dell continues to provide customers with a wide range of quality refurbished products, even as we improve competitiveness through the expertise and capabilities of a long-standing partner.”
Dell has earlier announced that it would move production of computer systems for customers in Europe, the Middle East and Africa from Limerick to its Polish operation and manufacturing partners over the next year. The involvement of manufacturing partners is expected to allow the company to improve its performance, and serve customers in various segments and locations.
